Save Article

Deutsche Bank's Deft Pre-Basel Timing

By

Simon Nixon

Updated Sept. 11, 2010 12:01 a.m. ET

It's hardly a surprise that Deutsche Bank is planning a rights issue, likely to be formally announced next week. The German banking giant is one of the most weakly capitalized banks in Europe and has always been clear that it might raise equity alongside a possible deal to buy out minorities in Postbank.

But the timing and size of the contemplated deal, likely to be in the region of €9 billion ($11.4 billion), or 27% of the current market capitalization, caught the market off guard. Yet on both counts, Deutsche looks to be...